How to transfer money using a phone number

Send money using the Pay to Mobile feature

The Pay to Mobile feature lets you send money to the contacts in your smartphone address book, even if they're with a different bank to you. Unlike standard bank transfers, you don't need the payee's bank account details. All you need is the recipient's mobile number.

If you're both with the same bank the transfer is simple and instant. Otherwise, the person you're sending money to will receive an SMS code and instructions on how to claim the payment (this is usually via clicking on a secure link and entering a verification code). Sending a payment to a friend's mobile number doesn't attract extra banking fees.

Only a limited number of banks still include Pay to Mobile functionality in their mobile banking apps. Westpac no longer offers Pay to Mobile in the latest version of its app, but does have it via online banking.

How to use Pay to Mobile

This will vary slightly between different banks, but the steps to make a payment using Pay to Mobile will generally be as follows:

1. Open your mobile banking app or log in to Internet banking and select the 'pay someone', 'make a payment' or 'pay' option.
2. Select the payee from your list of recipients, or select 'add a new payee' if you've never sent this person money before.
3. Select the 'Pay to Mobile' option and, if they're an existing payee, the money will be transferred instantly.
4. For new payees, you'll need to enter their mobile number and they'll be sent a text message with a secure link and verification code to claim the payment.
5. If they don't claim the payment within 3 business days the transfer will be canceled and the money will be back in your account.

Why use Pay to Mobile?

Pay to Mobile is an easy way to pay someone quickly. It's useful if you need to pay a friend back for a purchase or split a bill at a restaurant.

Finder survey: What do people use their banking app for?

Finder surveyed over 1,100 Australians about their banking app usage. We found that most Australians use their bank apps to transfer money or pay someone.

Send money using PayID

PayID is the standard way to pay someone via a mobile number today. Even if your bank offers Pay to Mobile, they'll most likely also offer PayID as a transfer method too.

PayID allows you to assign your mobile number to your bank account. Then, when someone wants to send you money, they can simply enter your mobile number to do so instead of asking for your account details.

How to use PayID

To send someone money to their phone number using PayID, they'll need to have their phone number registered with the service.

1. Open your mobile banking app or log in to Internet banking and select the 'pay someone', 'make a payment' or 'pay' option.
2. Select the payee from your list of recipients, or select 'add a new payee' if you've never sent this person money before.
3. Select the 'Pay with PayID' option and when asked the PayID type select 'Mobile'.
4. Enter the PayID (your recipient's mobile number) and their name should come up as a confirmation you've entered the number correctly. If they don't have a PayID, it won't come up as an option here and you won't be able to send them money this way.
5. Confirm the payment and they'll receive the money almost instantly, even if they're with a different bank.

FAQs on sending money using a phone number

• How do I monitor the status of a mobile payment?

  You can check on the status of a payment you’ve made to a mobile number by logging into your online banking facility or app. It'll show as pending until it's received.

• How is PayID different to Pay to Mobile?

  PayID has largely replaced Pay to Mobile. While it works in a similar way, PayID lets you pay someone with a mobile number, email address, an ABN, a standard phone number or Organisation Identifier.

  Unlike Pay to Mobile, a payment doesn't require a recipient's confirmation if they are with a different bank to you.

• What happens if I enter the wrong mobile number?

  When you make a payment to a mobile number using Pay to Mobile, the transaction status shows "Awaiting Collection" until the payment is received. You can cancel any Pay to Mobile transaction online while the payment is awaiting collection. If the payment has been received, you will need to contact your financial institution to arrange to reverse the transaction.

  If you're using PayID, after you enter the mobile number the person's name will appear as a confirmation before you click send. So if you've entered the wrong number, you'll be able to edit it and confirm before you send.

• Someone has sent me a mobile payment, how do I collect the money?

  If someone has sent a payment to your mobile, you will receive an SMS with the payment code. You’ll need this code as well as your BSB and account number. Enter this information on the website of the bank sending the payment and the funds will be deposited in your bank account. Sometimes there's a secure link sent to you as well which allows you to claim the payment.

• How long do I have to collect a payment?

  Pay to Mobile transactions are valid for up to 3 days. If the money has not been claimed in 3 days, the payment is cancelled.

  If someone sends you money using PayID, it'll be sent instantly and you don't need to do anything to claim it.

Written by

Alison Banney

Editor

Alison Banney is the money editorial manager at Finder. She covers all areas of personal finance, and her areas of expertise are superannuation, banking and saving. She has written about finance for 10 years, having previously worked at Westpac and written for several other major banks and super funds. See full bio

Alison's expertise

Alison has written 625 Finder guides across topics including:

• Superannuation
• Savings accounts, bank accounts and term deposits
• Budgeting and money-saving hacks
• Managing the cost of living